There is no dispute that Dollarama is one of the best performing Canadian retailers and its growth has been impressive seeing the chain recently pass the 1000 store mark and it is still growing!
With possible locations for new stores starting to narrow and inflation and exchange rates adding cost pressures, Dollarama has continued to expand its price points and recently we spotted these $4.00 Minions Toys at Dollarama in Ontario.
As Dollarama moves beyond the $1 and $2 price points it may seem like it is departing from a true “dollar store” strategy but in fact it is really chasing growth and likely putting more pressure on “traditional” retailers from supermarkets to party stores to Walmart.
And remember, Canadian Tire still sells tires but its namesake products now only make up a small part of its overall sales. We feel that Dollarama has a lot of room to grow beyond $4.00, especially if the retailer stays true its solid operations strategy that drives efficiencies.